Digital bank Revolut, one of the fastest-growing Fintechs with over 15 million customers, revealed on May 11, 2021, that it has integrated with Elliptic, a provider of digital asset risk management and blockchain analytics software.
This partnership should allow Revolut to expand its cryptocurrency offering.
As mentioned in a release, Revolut Metal clients in the United Kingdom now have the option to withdraw digital currency and their transactions are registered on the blockchain, “for the first time.”
The announcement also noted that customers have been able to hold cryptocurrencies since 2018 and this latest update means Revolut’s clients can spend their virtual currency, send it to their personal digital wallets, or transfer it to exchanges.
As stated in the release, Revolut will be using Elliptic Lens, Navigator and Forensics in the UK in order to give “visibility over risks, and the knowledge to block high-risk crypto-asset transactions.”
Ed Cooper, Head of Crypto at Revolut, stated:
“Elliptic’s reputation as the global leader in cryptoasset risk management made them the clear choice as Revolut’s compliance partner in the UK to support us as we continue to grow at pace and enhance our offering. Their services provide us with an integrated, automated compliance solution that is tailored to our risk appetite and enables us to meet FCA requirements and other regulatory standards. Elliptic’s asset-agnostic scoring capabilities, configurable risk-rules, as well as the extensive selection of cryptocurrencies supported are crucial for Revolut’s compliance operations and broadened cryptocurrency offering.”
Simone Maini, CEO of Elliptic, remarked:
“By adopting Elliptic’s crypto compliance tools, Revolut can mitigate risks of financial crime and broaden its cryptocurrency offering. Elliptic’s powerful blockchain analytics makes it safe to offer crypto withdrawals to customers and grant them access to a broader range of crypto-assets.”
Since launching its platform in 2015 in the UK, Revolut has been expanding its operations and is now one of the largest Fintechs in the world.
Many clients across the globe are moving to Fintech mobile apps or “challenger banks” that allow them to avoid costs and the complexities of working with incumbents.
With the rapid growth of the cryptocurrency community, users are increasingly turning to Revolut as the “one-stop-shop” for “improving financial wealth, gaining asset control, and seamlessly connecting with people from around the world,” the announcement noted.
But it’s worth noting that Revolut is a highly centralized platform where the user may not be in full control of their crypto since they may not have access to the private keys that control their funds (while their funds are deposited on Revolut).
Cryptocurrencies are supposed to be decentralized, permissionless, and should allow for unrestricted transactions. By transacting on Revolut and other centralized platforms like PayPal and Robinhood, crypto users may not be in complete control of their funds and could get locked out of their accounts for long periods of time.